Current through the 2023 Legislative Session.
Section 12100.83 - [Effective until 1/1/2024] CalOSBA to provide grants to qualified small businesses; outreach; priorities; awards(a)The California Small Business COVID-19 Relief Grant Program is hereby created within CalOSBA.(b)The program shall be under the direct authority of the director.(c)The purpose of the program is to provide grants to qualified small businesses affected by COVID-19 in order to support their continued operation.(d)The office or its fiscal agent shall consult with local, regional, state, and federal public and private entities, as applicable, that share a similar mission to support the needs of small businesses and nonprofits in California.(e)The office may contract with a fiscal agent, or amend an existing contract with a fiscal agent to meet the requirements of this article, to carry out the programs, at a rate of no more than 5 percent of administrative and programs funds appropriated by the Legislature for the purposes of this article.(f)The office shall allocate grants to qualified small businesses that meet the requirements of this article.(g)(1)The office shall conduct marketing and outreach for equitable awareness and the distribution of grants that includes all of the following: (A)Engaging multiple partners, including, but not limited to, business and nonprofit associations, chambers of commerce, economic development corporations, and other nonprofit mission-based organizations, and organizations with nonprofit expertise.(B)Providing access to technical assistance services covering all counties in the state and in multiple languages to reach non-English-speaking individuals in all counties in the state.(C)Building awareness throughout the state, including in underserved and underbanked communities, by collaborating with multiple community groups to distribute program information, applicant access through multiple branded partner portals, and advertising and social media outreach through owned, paid, and earned media channels.(2)For the qualified small business program, outreach in advance of open application rounds shall be conducted for a minimum of three weeks prior to opening each application round. Following each round, the fiscal agent shall assess service gaps and address outreach deficiencies as necessary to improve program equity.(3)The fiscal agent shall provide information on how to connect to additional support resources to each applicant whether or not the applicant is selected as a grant recipient.(h)Grants shall be prioritized, to the extent permissible under state and federal equal protection laws, in accordance with the following criteria: (1)Geographic distribution based on COVID-19 health and safety restrictions following California's Blueprint for a Safer Economy and county status and the Regional Stay Home Order.(2)Industry sectors most impacted by the pandemic, including, but not limited to, those identified as in the North American Industry Classification System codes beginning with:(A)61 - Educational Services.(B)71 - Arts, Entertainment, and Recreation.(C)72 - Accommodation and Food Services.(D)315 - Apparel Manufacturing.(E)448 - Clothing and Clothing Accessory Stores.(F)451 - Sporting Goods, Hobby, Musical Instrument, and Book Stores.(G)485 - Transit and Ground Passenger Transportation.(H)487 - Scenic and Sightseeing Transportation.(I)512 - Motion Picture and Sound Recording Industries.(J)812 - Personal and Laundry Services.(K)5111 - Newspaper, Periodical, Book, and Directory Publishers.(3)Nonprofit mission services most impacted by the pandemic, including, but not limited to, emergency food provisions, emergency housing stability, childcare, and workforce development.(4)Underserved small business groups that have faced historic barriers to access to capital and networks, and are defined as businesses majority owned and operated on a daily basis by women, minorities or persons of color, and veterans, or businesses in rural and low-wealth communities.(5)Disadvantaged communities tracked by socioeconomic indicators that may include, but are not limited to, low to moderate income, poverty rates, unemployment, educational attainment, and other disadvantaging factors that limit access to capital and other resources.(i)(1)Grants to qualified small businesses shall be awarded in a minimum of three rounds, which includes a closed round, in the following amounts: (A)Five thousand dollars ($5,000) for applicants with an annual gross revenue of one thousand dollars ($1,000) to one hundred thousand dollars ($100,000) in the 2019 taxable year.(B)Fifteen thousand dollars ($15,000) for applicants with an annual gross revenue greater than one hundred thousand dollars ($100,000), and up to one million dollars ($1,000,000), in the 2019 taxable year.(C)Twenty five thousand dollars ($25,000) for applicants with an annual gross revenue greater than one million dollars ($1,000,000), and up to five million dollars ($5,000,000), in the 2019 taxable year.(2)The office, or its fiscal agent, may conduct, pursuant to the existing eligibility, criteria, or other requirements from Rounds 1 and 2 of the COVID-19 Relief Grant Program, a closed round for existing applicants from those two rounds in order to award up to 25 percent of any newly allocated funds while initial outreach for future open rounds is conducted.(3)Rounds 1 and 2 of the COVID-19 Relief Grant Program shall not be considered a round for purposes of meeting the minimum round requirements described in paragraph (1).(j)(1) All remaining funds from the original allocation of fifty million dollars ($50,000,000) of program funds for eligible nonprofit cultural institutions, including those associated with educational institutions, shall be allocated in one or more rounds to eligible nonprofit cultural institutions.(2)Required verifying documentation: Form 990 verification, signed affidavit from governing body, or fiscal sponsor agreement to validate entities.(3)For purposes of this subdivision, "eligible nonprofit cultural institution" means a nonprofit entity that is organized primarily for the purpose of producing, promoting, or presenting the arts, history, heritage, or humanities to the public; or, organized for identifying, documenting, interpreting, and preserving cultural resources and that satisfies the criteria for a qualified small business applicant pursuant to subdivision (g) of Section 12100.82.(4)(A) The office shall not regrant funding to repeat eligible nonprofit cultural institution awardees unless the program is under subscribed and all entities seeking a first-time grant have been awarded.(B) Pursuant to subparagraph (A), the office shall:(C)711120 - Dance Companies.(D)711130 - Musical Groups and Artists.(E)711190 - Other Performing Arts Companies.(F)711310 - Promoters of Performing Arts, Sports, and Similar Events with Facilities.(G)711320 - Promoters of Performing Arts, Sports, and Similar Events without Facilities.(H)711410 - Agents and Managers for Artists, Athletes, Entertainers, and Other Public Figures.(I)711510 - Independent Artists, Writers, and Performers.(K)712120 - Historical Sites.(L)712130 - Zoos and Botanical Gardens.(M)712190 - Nature Parks & Other Similar Institutions. (i) Prioritize grants to repeat eligible nonprofit cultural institution awardees based on documented percentage revenue declines that are based on a reporting period comparing 2020 versus 2019.(ii)Prioritize organizations with the largest operating losses relative to their budget and past performance.(5)Eligible nonprofit cultural institutions include theater companies, dance companies, musical groups, symphony and opera companies, performing arts companies, arts & education organizations, art and history museums, historical sites, historical societies, zoos, aquariums, science centers, children's museums, botanical gardens, nature parks, and cultural centers.(6) The office shall give the first priority of grant awards to nonprofit cultural institutions that did not previously receive a grant from the California Small Business COVID-19 Relief Grant Program.(7)Grants shall be awarded to an eligible nonprofit cultural institution under this subdivision even if the eligible nonprofit cultural institution has otherwise been awarded a grant under subdivision (i).(8)Grants under this subdivision shall be awarded in the following amounts: (A)Five thousand dollars ($5,000) for applicants with an annual gross revenue of one thousand dollars ($1,000) to one hundred thousand dollars ($100,000) in the 2019 taxable year.(B)Fifteen thousand dollars ($15,000) for applicants with an annual gross revenue greater than one hundred thousand dollars ($100,000), and up to one million dollars ($1,000,000) in the 2019 taxable year.(C)Twenty-five thousand dollars ($25,000) for applicants with an annual gross revenue greater than one million dollars ($1,000,000) in the 2019 taxable year.(k)Grant moneys awarded under this section shall only be used for costs resulting from the COVID-19 pandemic and related health and safety restrictions, or business interruptions or closures incurred as a result of the COVID-19 pandemic, including the following:(1)Employee expenses, including payroll costs, health care benefits, paid sick, medical, or family leave, and insurance premiums.(2)Working capital and overhead, including rent, utilities, mortgage principal, and interest payments, but excluding mortgage prepayments, and debt obligations, including principal and interest, incurred before March 1, 2020.(3)Costs associated with reopening business operations after being fully or partially closed due to state-mandated COVID-19 health and safety restrictions and business closures.(4)Costs associated with complying with COVID-19 federal, state, or local guidelines for reopening with required safety protocols, including, but not limited to, equipment, plexiglass barriers, outdoor dining, PPE supplies, testing, and employee training expenses.(5)Any other COVID-19-related expenses not already covered through grants, forgivable loans, or other relief through federal, state, or county or city programs.(6)Any other COVID-19-related costs that are not human resource expenses for the state share of Medicaid, employee bonuses, severance pay, taxes, legal settlements, personal expenses, or other expenses unrelated to COVID-19 impacts, repairs from damages already covered by insurance, or reimbursement to donors for donated items or services.(l)(1)Applicants may self-identify race, gender, and ethnicity. Within seven business days of the close of each application period, the office shall post the aggregate data, as available. Within 15 business days of the close of each application period, the office shall post data by legislative district, as available. Within 45 business days, the office shall post the actual awarded information, as available. All information shall be posted on the Governor's Office of Business and Economic Development (GO-Biz) internet website and GO-Biz shall provide an electronic copy of the information to the relevant fiscal and policy committees of the Legislature.(2)The office shall report to the Legislature the number of grants and dollar amounts awarded for each of the following categories: (D)Located in a disadvantaged community pursuant to paragraph (5) of subdivision (h).(E)Located in a rural area.(G)State Senate district.(H)State Assembly district.(I)Nonprofits, including by geography.(J)Cultural institutions, including by geography.(K)Nonprofit cultural institutions, including by geography.(m)The fiscal agent shall issue Forms 1099 and otherwise adhere to tax reporting guidelines regardless of whether the grants are excluded from gross income for purposes of the Personal Income Tax Law (Part 10 (commencing with Section 17001)) or the Corporation Tax Law (Part 11 (commencing with Section 23001) of Division 2 of the Revenue and Taxation Code).Amended by Stats 2022 ch 68 (SB 193),s 19, eff. 6/30/2022.Amended by Stats 2021 ch 256 (AB 176),s 5, eff. 9/23/2021.Amended by Stats 2021 ch 74 (SB 151),s 15, eff. 7/12/2021.Added by Stats 2021 ch 7 (SB 87),s 1, eff. 2/23/2021.